IT expansion program to cost $250 mln.


Interfax Russian News Agency
October 7

The Uzbek president signed the law on computerization and introduction of IT technology at the end of May 2002, whereupon the Cabinet of Ministers approved a corresponding resolution and program for the 2002-2010 period.

These efforts all aim at formation of a nationwide system, widespread introduction and use of modern IT and telecommunications technologies, and expansion of access to global information resources.

This matter has received a lot of attention in recent years, and the latest effort is by no means the first government IT expansion program. It passed a national program for rebuilding and expanding Uzbekistan's telecommunications networks through 2010 in August 1995. Two other programs followed - "National Data Transmission Network Modernization and Expansion in 1999-2003" (in April 1999) and "Development of a Program to Expand Computer and Information Technologies in 2001-2005" in May 2001.

Although the earlier programs were indicative of state policy in the area, no general strategy emerged. Perhaps for that reason, among others, Uzbekistan has been slow to introduce up-to-date IT technologies.

The main obstacles to progress are a shortage of specialists, the low level of services offered, monopolistic pricing, and the public's low purchasing power. In addition, there is a large gap between IT technologies in the capital and those elsewhere.

Many countries in the region have been slow to adopt the latest technologies, and problems are particularly evident in Internet expansion. The region lacks many of the usual prerequisites for Internet services: a quality telecommunications infrastructure and a sufficient number of computer users and Internet service providers. Moreover, in many of these countries, Internet penetration is slowed by the need to get permission for access from the government.

Some time ago, the Reporters Without Borders organization published a list of 20 countries that "do not allow their citizens freedom to use the Internet." Uzbekistan was on the list, along with Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, China, Cuba, Libya, North Korea, Saudi Arabia, Syria, Sudan, Sierra Leone, and Tunisia.

The recent measures approved by the government of Uzbekistan should help to improve the situation. This program includes construction of several new telecommunications facilities. The number of international channels will rise substantially by 2005, 100% of which will be digital. The number of lines at the regional level will rise to 50,000 and the share of digital channels among them will reach 72%. Automated exchanges will reach 98%.

Just 40 out of 62 technical colleges and 22 out of 531 institutions of higher education currently have access to the Internet. The latter number is targeted to rise 10-to 15-fold by 2010.

The data transmission network will also expand considerably. A total of 235 new data transmission nodes will be set up before the end of 2002. The number of multi-user ports for accessing the Internet will rise to 45,000 by 2010. The number of Internet users will rise to 3,321,000, or almost 60% of families.

The government is enacting a number of customs and tax incentives to promote both domestic manufacture and importation of equipment for data transmission networks, computers and peripherals and software.

The program, which will cost roughly $250 million, will be financed with foreign bank loans and by local operators and providers.

Uzbekistan and the European Bank for Reconstruction and Development (EBRD) recently reached agreement on investment for setting up a fund to develop information and communications technologies. The president has authorized formation of the fund, from the state non-budgetary fund to support priority projects and research work in data transmission and information technologies. The EBRD may provide as much as $20 million in financing. Talks on the exact mechanism for EBRD participation will be held in July.